Jack Dorsey's Block Unveils Bitcoin Investment Strategy: Buying BTC with a Monthly Plan
In a surprise move, Jack Dorsey's Block has announced a new investment strategy that focuses on buying Bitcoin. The company, which has been under scrutiny for allegedly facilitating illegal transactions, has revealed that it will be allocating 10% of its monthly gross profit to buying additional BTC. This strategy is expected to continue for the rest of the year.
Block's CEO, Jack Dorsey, a self-proclaimed Bitcoin enthusiast, has emphasized the importance of an open protocol for money. The company's Q1 earnings report exceeded expectations, with a gross profit of $2.09 billion, a 22% increase from the previous year. Block's stock price also surged, with a gain of 0.85 US dollars per share, beating analyst estimates.
The company's Bitcoin-related projects are still in their early stages, with less than 3% of Block's resources currently dedicated to these initiatives. However, Dorsey believes that these projects are crucial for the future of the company.
The new investment strategy is expected to result in the purchase of approximately 389 Bitcoin by the end of the year, valued at around $24 million at the current price of $61,600 per BTC. Block already holds significant BTC reserves, acquired during the previous Bitcoin cycle. The company's total Bitcoin holdings are valued at around $494 million.
Block's new strategy aims to drive Bitcoin adoption through its payment platforms, Square and Cash.App, as well as through new BTC purchases. This move is expected to make Block one of the top 10 companies with the largest Bitcoin holdings globally.
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